NASDAQ$CLMB

Climb Global Solutions Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported record third quarter results with net income and adjusted net income up more than 2x and adjusted EBITDA up 96%.

Climb Global Solutions reported a strong third quarter with net sales up 52% to $119.3 million, adjusted gross billings up 65% to $465.2 million, and adjusted EBITDA up 96% to $9.9 million. The company's performance was driven by organic growth and the integration of DSS and DataSolutions.

  • Net sales increased 52% to $119.3 million.
  • Adjusted gross billings increased 65% to $465.2 million.
  • Net income increased more than 2x to $5.5 million, or $1.19 per diluted share.
  • Adjusted EBITDA increased 96% to $9.9 million.

Headline financials

Total Revenue

$119M

Previous: $78.5M+52.1%
EPS

$1.19

Previous: $0.52+128.8%
Capital Expenditures

-$1.23M

Previous: -$1.16M-6.6%
Free Cash Flow

$5.46M

Previous: $2.37M+130.1%
Net Income

$5.46M

Previous: $2.37M+130.1%
Operating Income

$8.51M

Previous: $3.29M+158.9%
Gross Profit

$24.3M

Previous: $14.3M+69.9%
Cash & Equivalents

$22.1M

Previous: $49.8M-55.5%
Total Assets

$372M

Previous: $232M+60.1%
Stock-Based Comp

$904K

Previous: $687K+31.6%

Revenue & EPS history

Climb Global Solutions · Revenue · Quarterly

$119M

Q3 2024+52.1%vs Q3 2023
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

The company will continue to leverage its global infrastructure to foster organic growth while actively evaluating M&A targets that complement its geographic footprint, expand its service and solution offerings and, most importantly, align with its high-performance culture. They expect to unlock additional synergies from acquisitions and further improve operating leverage as they execute across their global platform. They believe that these initiatives, coupled with a proven track record of accretive M&A, will enable them to close out 2024 on a strong note and achieve another year of record results.

Tailwinds

  • Leveraging global infrastructure to foster organic growth.
  • Actively evaluating M&A targets.
  • Expanding service and solution offerings.
  • Aligning with a high-performance culture.
  • Unlocking additional synergies from acquisitions.

Headwinds

  • Risk of not recognizing anticipated benefits of acquisitions.
  • Continued acceptance of the Company’s distribution channel by vendors and customers.
  • Timely availability and acceptance of new products.
  • Competitive pricing pressures.
  • Successful integration of acquisitions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+2.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+4.3%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+19.4%

Q4 2022

Best reaction

-21.9%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-21.6%-7.4%+1.3%
Q4 2025-2.2%-3.9%-15.7%
Q3 2025-7.7%-15.1%-24.3%
Q1 2025-4.5%+1.0%+4.5%
Q4 2024+12.8%+1.8%-16.4%
Q3 2024-3.7%+1.6%+26.6%
Q2 2024+18.8%+27.3%+46.4%
Q1 2024-8.3%-9.4%-10.7%
Q4 2023+13.3%+11.5%+18.1%
Q3 2023-5.5%-4.6%+8.9%
Q2 2023-21.9%-20.5%-12.4%
Q1 2023+2.6%+6.9%+6.7%
Q4 2022+19.4%+23.3%+34.1%
Q3 2022-0.8%-1.4%+2.3%
Q2 2022-1.5%+0.4%-7.9%
Q1 2022+1.9%-0.7%+9.4%
Q4 2021+11.2%+4.3%+14.1%
Q3 2021+7.6%+3.6%+11.2%
Q2 2021+15.3%+9.1%+6.4%
Q1 2021-0.6%+0.3%+16.6%
Q4 2020+18.2%+21.9%+22.6%
Q3 2020-10.6%-11.6%-16.1%
Q2 2020-16.0%-15.3%-1.2%
Q1 2020+15.7%+20.5%+58.4%
Q4 2019+15.2%+11.6%-23.3%
Q3 2019-8.6%-7.8%-0.5%
Q2 2019+9.2%+14.8%+25.9%
Q1 2019-0.7%-2.9%-10.8%
Q4 2018+11.1%+10.7%+6.6%
Q3 2018+3.7%-0.6%-10.6%
Q2 2018-5.2%-8.5%-11.4%
Q1 2018+2.9%+3.3%+2.5%
Q4 2017+10.2%+10.9%+1.8%
Q3 2017-2.9%-3.1%+9.8%
Q2 2017-2.2%-6.1%-14.4%
Q1 2017+7.2%+3.6%+4.1%
Q4 2016+9.0%+7.2%+10.2%
Q3 2016+1.5%+0.0%-0.3%
Q2 2016+0.1%-0.3%-3.7%
Q1 2016-0.8%
Q4 2015-8.2%
Q3 2015+4.0%
Q2 2015+1.3%
Q1 2015+2.7%
Q4 2014-3.6%
Q3 2014+0.2%
Q2 2014-1.0%
Q1 2014-12.7%
Q4 2013+6.8%
Q3 2013+1.3%
Q2 2013+3.3%
Q1 2013+2.8%
Q4 2012-0.3%
Q3 2012-1.3%
Q2 2012-0.8%
Q1 2011+2.3%
Q1 2012+1.3%
Q4 2009+0.8%
Q4 2011+0.8%
Q3 2011+1.4%
Q3 2010+1.4%
Q2 2011+15.1%
Q4 2010+15.1%
Q2 2010+15.1%
Q1 2010-0.3%

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